The ¥90.33 trillion fiscal 2012 budget was enacted April 5. If a special budget for the reconstruction of areas hit by the 3/11 triple disasters is included, its size expands to ¥93.55 trillion. Because the budget failed to be enacted by March 31, the end of fiscal 2011, the Noda administration had to adopt a provisional budget — the first such budget in 14 years. Although it only had to cover six days, this shows that the administration's political foundation lacks strength and that the opposition forces have not let up their offensive against the Noda Cabinet.
The opposition-controlled Upper House on April 5 rejected the budget. After a consultative body set up by the both chambers of the Diet failed to reach agreement, the Lower House's vote on March 8 to pass the budget overrode the Upper House's vote in accordance with constitutional provisions.
Although the fiscal 2012 budget was enacted, the Noda administration still has another hurdle to overcome. The budget depends on deficit bonds for 42 percent of the revenues. But the bill to authorize the bond flotation is still pending in the Lower House due to resistance by opposition forces. Without the bond flotation, the government cannot fully execute the budget. Since the budget has been enacted, the opposition should cooperate with the ruling bloc so the budget can be put into operation as smoothly as possible.